Question

The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day:

Beginning WIP inventory
Direct materials	$	991
Conversion costs		422
Current period costs
Direct materials		19,406
Conversion costs		11,331

Quantity information is obtained from the manufacturing records and includes the following:

Beginning inventory	950	units	(60% complete as to materials, 56% complete as to conversion)
Current period units started	5,000	units
Ending inventory	1,200	units	(40% complete as to materials, 30% complete as to conversion)

Compute the cost of goods transferred out and the ending inventory using the weighted-average method. (Do not round intermediate calculations.)

COST OF GOODS TRANFERRED OUT ???????
COSTS IN ENDING INVENTORY    ??????

Answer 1

• All working forms part of the answer
• Workings

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	4,750	100%	4,750	100%	4,750
Units of ENDING WIP	1,200	40%	480	30%	360
Equivalent Units of Production			5,230		5,110

COST per EUP			Material		Conversion
Cost of Beginning WIP			$                991.00		$                                        422.00
Cost incurred during the period			$          19,406.00		$                                  11,331.00
Total Costs		Costs	$          20,397.00	Costs	$                                  11,753.00
Equivalent units of production		EUP	5,230	EUP	5,110
Cost per EUP			$              3.90		$                                      2.30

• Answers

Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	4,750	$                      3.90	$          18,525.00
- Conversion	4,750	$                      2.30	$          10,925.00
Total Cost transferred Out				$              29,450.00 = Answer

Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	480	$                      3.90	$             1,872.00
- Conversion	360	$                      2.30	$                828.00
Total cost of ending WIP				$                 2,700.00 = Answer